Vontobel has launched certificate for potential winners from the US / China trade conflict based on the study "The Next Digital Superpower".
The trade conflict between the USA and China has the potential to globally change the existing balance of power. There are countries, regions, and sectors that could benefit from possible shifts in trade flows. Together with Eurasia Group, Vontobel has examined various scenarios in the study "The Next Digital Superpower". Due to the great interest in this topic, Vontobel has now developed a product that allows investors to participate in the potential changes.
In the study - which can be obtained from Vontobel - Vontobel and Eurasia Group examine various scenarios with their respective possible effects on countries, regions, and sectors that could be affected by the shifts in power.
In the most likely scenario from the experts' perspective, the trend towards shorter trade routes could make Latin America an attractive production location for the USA and Southeast Asia an attractive location for China. Countries such as Vietnam, Indonesia, Thailand, Bangladesh, Taiwan, Malaysia, and Mexico could benefit the most. Since the beginning of Sino-American trade tensions, foreign direct investments in some of these countries have already reached record levels.
To enable investors to participate in the possible reorganization of supply chains, Vontobel has developed a tracker certificate that focuses on those countries and sectors that could be among the profiteers according to the underlying scenario. The Vontobel Trade Conflict Winners Emerging Markets Index includes equities from selected emerging markets. The index universe comprises equities of companies in emerging markets that are valued using a point system based on more than 100 quantitative indicators. The index composition is adjusted at least every six months.